/ 9 March 2004

Camera phones lead the charge

The growing popularity of camera handphones will be the major driver behind the resurgence of the global mobile phone sector, Japanese-Swedish joint venture Sony Ericsson said on Tuesday.

”Looking at the industry, we have seen a global handset sales recovery,” Kazuo Nakai, regional corporate vice-president, said at the launch of a new range of Sony Ericsson mobile phones in Singapore.

”[With] the rise of the camera phones, consumers are flocking to purchase new phones. This is the beginning of a new replacement cycle,” he said.

”We have seen that consumers appreciated the new way of taking pictures.”

Built-in cameras are now considered basic features in mobile phones as more consumers view the wireless gadget as an all-in-one telecommunications tool comprising the internet, messaging, e-mails and video functions.

United States-based industry research house Gartner said global mobile handset sales likely exceeded 510-million units in 2003 but gave no breakdown of camera phones sales.

Sony Ericsson, a joint venture between Japan’s Sony Corporation and Sweden’s Ericsson, predicted 30% of global handset sales in 2004 will comprise mobile phones with built-in cameras.

”As you know, the Japanese market is one of the most advanced markets in terms of communications,” said Nakai.

”We are the only one of the top five phone makers which has substantial business in Japan and it gives Sony Ericsson a unique market advantage.”

Sony Ericsson swung into profit in the final quarter of 2003 and trimmed its full-year net loss by 64% to €86-million.

The group had posted a 2002 net loss of €241-million. — Sapa-AFP